ATRIUM LEGAL LAB LTD

The Experts for your Regulated
Financial Entity


  • Cryptocurrency
    Exchange
  • Estonia
    Cryptocurrency
    Exchange
  • Estonia, a new European Crypto Market -
    Starting a Crypto Currency Company in Estonia with Exchange and Wallet Service Provider License

    Key points for Cryptocurrency Company structure

    Expected Timeframe

  • Isle of Man
    Cryptocurrency
    Exchange & Trade
  • Regulatory Oversight as a means of Attracting Business

    Designated Business Registration Policy IOMFSA Changes – 5th October 2018

    How long will an Application take?

  • Ireland
    Cryptocurrency
    Company
  • Open a Cryptocurrency Company in Ireland

    Why Register a Bitcoin Company in Ireland?

    Cryptocurrency Regulation 2019 Taxation

    Anti-Money Laundering Requirements

    Ownership and Licensing Requirements

    Passporting Rights

  • New Zealand
    Cryptocurrency Trade and
    Initial Coin Offering (ICO)
  • New Guidance on Cryptocurrencies and Initial Coin Offering (ICO)

    Exchanges, Wallets, Broking
    Registration and other Obligations

    Initial Coin Offering (ICO)

    ICO Regulation
    Types of Financial Product
    Tokens that are not Financial Products

    Other Obligations
    Fair Dealing and Initial Coin Offers

    FMA Services

  • Foreign Exchange(FX)
    Securities Dealer
    License
  • Seychelles
    Securities Dealers License,
    Forex
  • Seychelles Advantages

    Applying for a Securities Dealers License

    Capital Requirement

    Financial Dealers Licensing Amendments

    Transitional Provisions

  • Vanuatu
    Securities Dealers
    Forex
  • Vanuatu FX Regulation

    List of Securities Covered by
    The Dealer in Securities License

    Key Requirements
    Vanuatu Securities Brokerage Dealer License

    Why Vanuatu Forex License

    How Atrium Legal Lab Can Help You

  • Cyprus Brokerage Services
    Forex Trading License
  • Cyprus Investment Firm (CIF)
    Why Cyprus?

    Cyprus Strategic Advantages

    Cyprus Investment Firm (CIF) License
    Initial Capital Requirements

    Conditions for the Granting of a License

  • E-Money
    Payment Services
    Institutions (EMI - PSP)
  • Mauritius Investment Dealer &
    Broker License
  • Mauritius Investment Dealer & Broker License

    Investment Dealer Categories
    Under the Security Act

    Application and Requirements

    Mauritius Investment Dealer & Broker License
    Advantages

  • New Zealand
    Financial Services Providers
    FSP
  • Advantages to be Licensed in New Zealand
    As a Financial Services Provider (FSP)

    NZ FSP Registration
    Who needs to be licensed?

    New FMA Role

    New Zealand FSP Registration
    What you need to Obtain FSP Registration

    NZ FSP Registration
    Timeframe to Complete this process

  • Georgia
    International Financial Company
  • Benefits of Republic of Georgia -

    Setting up an International Finance
    Company in Georgia

    License Application
    Documents, Requirements and
    Expected Timeframe

  • Financial Holding &
    Private Asset
    Management
  • BVI Hedge Funds
  • Funds in the British Virgin Islands
    Fund Structuring

    British Virgin Islands
    Registration of an Investment Fund

    BVI Incubator and Approved Fund

    BVI Hedge (Incubator) Funds
    Limited Functionary Requirements

  • Luxembourg
    Private Asset Management
    Company (SPF)
  • Luxembourg Private Asset Management Company (SPF) - The Concept

    Permitted and Prohibited Activities of a Luxembourg SPF

    Luxembourg SPF
    Capital Requirement and Supervision

    Luxembourg Private Asset Management (SPF)
    Advantages

  • Luxembourg
    Holding & Finance Company
    SOPARFI
  • Luxembourg SOPARFI (Société de Participations Financières) - The Concept

    Why Luxembourg?

    Luxembourg Holding (SOPARFI)
    Advantages

Estonia, a new European Crypto Market
Cryptocurrency Company in Estonia

Estonia is being considered as one of the mildest IT jurisdictions with the most favourable terms for obtaining a crypto currency exchange license for start-ups in the blockchain tech industry.

New crypto currency exchange and trading platforms appear every week and substantial part of them is being licensed in Estonia, as the whole process takes less time than in other jurisdictions.

Although many companies have opted for a Malta crypto exchange license, with the country having established itself as a prime fintech hub for more than a decade, Estonia is also a very popular choice from a technological perspective. Estonia has advanced at full speed, permitting foreigners to open companies remotely and access governmental services from a distance.

Our team of experts is there to help your project to pass all necessary procedures, prepare required documents and receive final permissions from the side of the authorities.

Reasons for Starting a Cryptocurrency Company in Estonia

It’s easy to see why Estonia has earned a reputation as being one of the most secure places in the world to invest in cryptocurrency and that having an Estonia crypto licence is a prestigious accolade. The country’s commercial legislation encourages investors to set up companies by providing the straightforward registration procedure described, together with a transparent taxation system.

With its enthusiastic market and government which supports cryptocurrency initiatives, Estonia is a big attraction to companies setting up business. As one of the European countries where cryptocurrency is strictly regulated, establishing a cryptocurrency company in Estonia is not only a safe option for your company, it also provides your clients with the reassurance that your company falls under the auspices of a world-renowned jurisdiction.

Legislation on Cryptocurrency in Estonia

In 2014, the Tax and Customs Board of Estonia published a document called Taxation of Trade in Bitcoins relating to bitcoins in Estonia which acknowledged bitcoin as a decentralised virtual currency. As a result, all persons and companies undertaking bitcoin transactions, have to be registered as providers of business services.

In 2017, the government of Estonia also updated the law relating to anti-money laundering, introducing improved regulations governing the operations of cryptocurrency companies. These include clearer definitions as to the use of cryptocurrencies, cryptocurrency wallets, types of licences available and the obligation of obtaining authorisation from the Financial Intelligence Unit Estonia.

The new regulations imposed on cryptocurrency companies in Estonia do not impose any restrictions for these companies to operate outside the country although they do need to comply with the legislation in the country where they will offer their services.

Types of Cryptocurrency Licences

Companies wanting to apply for an Estonia cryptocurrency licence should be aware that there are two types of cryptocurrency licences that cryptocurrency companies can obtain.

A cryptocurrency exchange service provider licence allows a company to provide exchange services to those interested in trading cryptocurrencies against fiat currencies or other cryptocurrencies. A cryptocurrency wallet service provider licence, meanwhile, is issued to companies who wish to offer e-wallets or virtual token wallets.

Other kinds of cryptocurrency businesses, such as those involved in mining activities, can also be established in Estonia but unless they are involved in trading activities where a cryptocurrency broker licence is required, no special licence is necessary.

Key points for Cryptocurrency Company Structure

In order to successfully set up the cryptocurrency exchange and/or wallet service license an Estonian limited liability company has to be set up. This process can be carried out remotely with no visit required, it usually takes about 5 business days for the registry to process.

An application for either of the licences must then be filed with the Financial Supervisory Authority through the Financial Intelligence Unit Estonia, amongst the documents that need to be submitted are the company’s Certificate of Incorporation, together with KYC and risk assessment documentation.

The applications are reviewed by the Intelligence Unit which takes up to 30 days after which time, the company can commence its activities.


General Structure Information:

At least 1 shareholder (private person or corporate entity). No restrictions to citizenship or residence. For optimal setup structure please consult our legal team.

At least 1 director/management board member. Foreign residents are allowed, no restrictions to citizenship or residence. Can be same as shareholder.

No secretary nor local physical office required (only local registered office and registered agent – we hold the license to provide these services).

Beneficial owners’ details are disclosed to the authorities.

Taxation of cryptocurrency transactions in Estonia

Virtual currencies (e.g. Bitcoin and altcoins) exchange services are not subject to VAT. Services invoiced (e.g. sales invoices) in virtual currencies are subject to regular VAT rules.

Corporate profits are not taxed (CIT=0%) until the profits are distributed (as dividends).

Income tax 20% is charged on gross dividends (calculated as 20/80 of the net dividend). Special conditions apply for a 14% rate (for legal entities).

Expected Timeframe

It usually takes about two weeks for a cryptocurrency licence to be issued and it should be noted that a company must start its operations within 6 months of the date that the licence was issued.

In case you want to start a company remotely (without visiting Estonia) - it usually takes 2-3 weeks additional time and involves some additional costs.

Our Fintech Practice

Our lawyers and financial services specialists at ATRIUM LEGAL LAB provide solutions to clients by combining the traditional legal fabric with new technologies.

If you would like more information as to how to get a digital currency license, setting up of an ICO, a cryptocurrency exchange, or alternatively would like to set up a Crypto Fund in Estonia, we welcome you to get in touch with our specialists.

Should you have an enquiry
You would like to discuss with us
You can either call or email us.

One of our Customer Representatives will be most pleased to help and assist you

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Legal disclaimer

The information and materials contained in this website do not constitute an offer, invitation, solicitation, advice or recommendation to buy the products and services offered and rendered by Atrium Legal Lab Ltd and shall be applied with prior consultation.

Atrium Legal Lab Ltd does not offer legal or tax advice without consultation with certified professionals with related appropriate skill and expertise.

The information contained in this website is for general guidance on matters of interest only and should not be considered as guidance for financial or tax decisions, or a substitute for specific professional consultation.

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